Court stays NUBE-MCBA festival aid talks pending appeal

The High Court has stayed an order requiring the Malayan Commercial Banks’ Association (MCBA) and the National Union of Bank Employees (NUBE) to resume negotiations on festival aid payments for workers pending MCBA’s appeal to the Court of Appeal.

Justice Norliza Othman granted the association’s application, saying it could suffer serious and irreversible prejudice if the stay was not granted.

She said the Court of Appeal’s decision would directly affect the dispute because, if the association succeeded, the matters referred to the Industrial Court would have to be relitigated.

“The gist of the stay goes to the very root of the dispute between the parties,” she said.

The dispute concerns festival aid payments and the parties’ 20th collective agreement.

NUBE had claimed one month’s salary as festival aid for eligible B40 and M40 members. The association made the payments in 2023 but refused to do so in 2024.

The dispute was subsequently referred to the Industrial Court by the human resources minister.

NUBE also challenged the referral of disputes concerning the 20th collective agreement, arguing that the parties should use an internal settlement mechanism under Article 4(5) of their collective agreement.

On Feb 13, the High Court allowed NUBE’s judicial review application, quashing the minister’s two referrals and ordering the parties to return to negotiations under the agreed mechanism.

The association and the minister subsequently appealed, prompting the association’s stay application. The appeal has been scheduled for March 22 next year.

In her judgment, Norliza said a stay required “special circumstances” and that the merits or prospects of the appeal were not relevant at this stage.

She also rejected NUBE’s argument that the festival aid issue was merely a monetary claim.

“If the monies are paid, there is a risk the money cannot be fully recovered from every member in the event the (Court of Appeal) rules in the association’s favour, that they were not obliged to make payment,” she said.

Norliza said there was no prejudice to NUBE because, should it succeed in the appeal, the parties could resume negotiations.

“The balance of convenience clearly favours the grant of stay,” she ruled.

N Sivabalah, E Reena, Hua Zhi Loon and Peter Halach Santiago appeared for MCBA while senior federal counsel Isa Mohamad represented the minister, the industrial relations department director-general and the Industrial Court.

Ravi Nekoo and M Arvin Kumar acted for NUBE.

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